We use data for a panel of 60 countries over the period 1980-2005 to investigate the main drivers of the likelihood of structural reforms. We find that: (i) external debt crises are the main trigger of financial and banking reforms; (ii) inflation and banking crises are the key drivers of external capital account reforms; (iii) banking crises also hasten financial reforms; and (iv) economic recessions play an important role in promoting the necessary consensus for financial, capital, banking and trade reforms, especially in the group of OECD-countries. Additionally, we also observe that the degree of globalisation is relevant for financial reforms, in particular in the group of non-OECD countries. Moreover, an increase in the income gap accelerates the implementation of structural reforms, but increased political fragmentation does not seem to have a significant impact.

Agnello, L., Castro, V., Jalles, J., Sousa, R. (2015). What determines the likelihood of structural reforms?. EUROPEAN JOURNAL OF POLITICAL ECONOMY, 37(37), 129-145 [10.1016/j.ejpoleco.2014.10.007].

What determines the likelihood of structural reforms?

AGNELLO, Luca;
2015-01-01

Abstract

We use data for a panel of 60 countries over the period 1980-2005 to investigate the main drivers of the likelihood of structural reforms. We find that: (i) external debt crises are the main trigger of financial and banking reforms; (ii) inflation and banking crises are the key drivers of external capital account reforms; (iii) banking crises also hasten financial reforms; and (iv) economic recessions play an important role in promoting the necessary consensus for financial, capital, banking and trade reforms, especially in the group of OECD-countries. Additionally, we also observe that the degree of globalisation is relevant for financial reforms, in particular in the group of non-OECD countries. Moreover, an increase in the income gap accelerates the implementation of structural reforms, but increased political fragmentation does not seem to have a significant impact.
2015
Settore SECS-P/02 Politica Economica
Agnello, L., Castro, V., Jalles, J., Sousa, R. (2015). What determines the likelihood of structural reforms?. EUROPEAN JOURNAL OF POLITICAL ECONOMY, 37(37), 129-145 [10.1016/j.ejpoleco.2014.10.007].
File in questo prodotto:
File Dimensione Formato  
What determines the likelihood.pdf

Solo gestori archvio

Tipologia: Versione Editoriale
Dimensione 326.27 kB
Formato Adobe PDF
326.27 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/130148
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 54
  • ???jsp.display-item.citation.isi??? 44
social impact